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2018 (5) TMI 582 - AT - Income TaxTDS u/s 194H - non deduction of tds on payments of commission to its distributors on the sale of pre-paid SIM cards, recharge coupons etc. - Held that:- The issue contested herein was decided against the assessee by the Hon’ble Delhi High Court in case of the assessee’s own case in CIT vs. Idea Cellular Ltd. for A.Ys 2003-04 and 2004-05 [2010 (2) TMI 24 - DELHI HIGH COURT]. But, in case of Bharati Airtel Limited vs. DCIT (2014 (12) TMI 642 - KARNATAKA HIGH COURT) and in assessee’s own case (2017 (7) TMI 1076 - RAJASTHAN HIGH COURT) Hon’ble Rajasthan High Court decided this issue in favour of the assessee. Thus as relying on case of CIT vs. Vegetable Products Ltd. [1973 (1) TMI 1 - SUPREME Court] wherein it is held that if two reasonable constructions of a taxing provision are possible that construction which favours the assessee must be adopted. Hence assessee cannot be deemed to be an ‘assessee-in-default’ on discount/commission of sale of prepaid sim cards. Therefore, Ground No. 2 of the assessee’s appeal is allowed. TDS on roaming charges - TDS u/s 194J - held that:- in absence of any human intervention during the actual roaming process, payment would not be Fees for Technical services as per the decisions of the various High Court and the Apex Court in case of CIT vs. Bharati Cellular[2010 (8) TMI 332 - Supreme Court of India]. Thus, payment made to other telecom operators should not be regarded as payment towards fees for technical service. No Tds liability - Decided in favour of assessee.
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